Hi Tokyo. "...subject to Project Funding." as per Chairman's...

Hi Tokyo. "...subject to Project Funding." as per Chairman's address 27/11. The devil is in the detail. Yes, it all looks bedded down, but the fact is:-IT IS NOT.
A further significant slide in the price of molybdenum could trigger a possible out clause, if such a clause exists.
The lender may go belly up.....so many uncertainties.

I have a small holding in MOL (couldn't resist at 28c)and will be happy when they have the full Project Funding in the bank. Their current $AUD180 million is earmarked and will be used up over the next few months in development costs.
Why the cost cutting measures and freeze on exec salaries? If MOL were running the business correctly they shouldn't have any costs that can be cut. Indicates to me that they are sailing close to the wind and can't afford any hiccups from now on or the project will end up in the hands of the CFE's out there.
Look at OZ Minerals as an example.

Just being ultra cautious. I am prepared for 1 of my holdings to go belly up - that's just the way it is atm. Hence a spread over 7+ stocks. Currently:CFE,MOL,RMS,GDY,ARU,DYE,LNC,LNG.(20%in RMS//GOLD!)
Cheers, TRIG
p.s. sentiment for MOL is Hold. CFE remains a Buy.